Devoted to the Insurance industry and all thing related

Depending on who you believe medical malpractice insurers are either charging too much premiums to doctors or are charging just enough.  According to a National Underwriter article a report from the American Association for Justice “accuses medical malpractice insurers of price-gouging doctors with excessive premium” and “needlessly contributing to the growing cost of health care.”

The report was written by former Missouri Insurance Commissioner Jay Angoff and spells out some less than stellar assertions.

“Medical malpractice insurers saw losses and projected losses plummet by 48 percent over the period 2003 to 2006.

These incurred losses (projected future loses) have declined every year for the past five years.

 

Insurers’ 2006 surplus is 43 percent greater than their surplus in 2003 and five times the state-minimum surplus for insurer stability.

Only three of the 15 leading insurers issued dividends to doctors in 2006.”

However, if you listen to Lawrence Smarr, president of the Physician Insurers Association of America there are many “shortcomings” including assertions that “the report does not include loss adjustment expense or underwriting expenses when discussing the premium dollar.  The report also fails to include companies that have suffered significant losses.”

Smarr seems to believe that the report is “an incomplete picture” while Angoff appears to think all is clear as day.  What do you think about this issue?